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Flexible Strategy for Small and Medium-sized Multinationals in Asia

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  • Giuseppe Tattara

    ()
    (Department of Economics, University Of Venice Cà Foscari)

Abstract

Italian firms have recently engaged in direct investment abroad through the establishment of production facilities in China and India. Using data gathered from interviews conducted in those countries in 2009 with 16 Italian predominantly small and medium-sized firms, this article explores: the motivations behind Italian parent companies’ decisions to create subsidiaries in Asia; relations between the newly established production facilities and their local suppliers and markets; any subsequent organizational adaptations; and the cultural and administrative difficulties the enterprises have encountered. The article provides a novel perspective on how predominantly small and medium-sized manufacturing firms achieve cost and differentiation advantages by leveraging their dynamic capabilities.

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File URL: http://www.unive.it/media/allegato/DIP/Economia/Working_papers/Working_papers_2012/WP_DSE_tattara_06_12.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2012_06.

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Length: 23
Date of creation: 2012
Date of revision: 2012
Handle: RePEc:ven:wpaper:2012_06

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Keywords: Strategic management of multinational firms; Value chains; Capability-based strategies.;

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  1. Saul Estrin & Martha Prevezer, 2010. "The Role of Informal Institutions in Corporate Governance: Brazil, Russia, India and China Compared," Working Papers, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research 31, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
  2. Jamuna Agarwal, 1980. "Determinants of foreign direct investment: A survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 116(4), pages 739-773, December.
  3. Tattara, Giuseppe & Campagnol, Desirée, 2008. "Delocalizzazione Produttiva E Ammortizzatori Sociali. La Tessitura Monti Spa
    [Internationalization and redundancies: the case of Monti Textile Group Spa]
    ," MPRA Paper 10357, University Library of Munich, Germany.
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